Bitcoin (BTC) Price Prediction: BTC/USD Bulls Target $110K as ETF Inflows Surge

The BTC/USD pair rally took a breather after forming a doji candlestick pattern and a rising wedge on the daily chart.

Bearish View

The BTC/USD pair’s recent rally took a breather after forming a doji candlestick pattern and a rising wedge on the daily chart. Bitcoin remained stuck below $101,000 after the recent strong rally, with some traders booking profits.

However, BTC’s pullback occurred despite the coin continuing to enjoy strong fundamentals. The most critical one is the ongoing ETF inflows.

Since November 27, spot Bitcoin ETFs have had a strong net inflow in each trading session. The total inflows have risen to over $36.7 billion, while the total assets under management have increased to over $121 billion.

Blackrock’s ETF has emerged as the biggest player in the industry, with over $58.57 billion in assets. It is followed by Grayscale’s GBTC, with $22.3 billion, and Fidelity’s ETF, with $22.16 billion in assets. These assets are set to continue rising as demand increases.

The BTC/USD pair also retreated following the Federal Reserve interest rate decision. As widely anticipated, the bank slashed interest rates by 0.25%, bringing the year-to-date cuts to 1%.

Moreover, the bank hinted at future rate cuts, albeit at a gradual pace. The bank is concerned about the labor market, with inflation rising to 4.2% in November. It is also worried about inflation, which has remained above the 2% target rate.

BTC/USD Technical Analysis:

On the daily chart, we can see that the BTC/USD pair has been in an uptrend, recently hitting the critical resistance level at 100,000. It has formed an ascending channel, which appears to be a rising wedge pattern, a common bearish technical indicator.

Bitcoin also formed a small doji candlestick pattern, which is a reversal signal. This pattern consists of a very small body and an upper and lower shadow, indicating that the asset opened and closed at the same price during the session. The formation of a doji often precedes further downtrends.

The BTC/USD pair has been trading above the 50-day moving average, which is a bullish signal. Therefore, the pair will likely experience a brief pullback, possibly retesting the support at 99,000 before continuing its uptrend.

If the BTC/USD pair rises above the year-to-date high of 108,250, it will confirm further upside potential. In this scenario, the pair could advance towards the next critical resistance level at 110,000.

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